WASHINGTON, May 1 /PRNewswire-USNewswire/ -- The nation's two leading
long term care organizations warned that a key component of a newly-issued
rule from the Centers for Medicare and Medicaid Services (CMS), and other
changes announced today, will slash Medicare-financed nursing home care by
approximately $5 billion over five years. This regulatory cut, leaders of
the American Health Care Association (AHCA) and the Alliance for Quality
Nursing Home Care say, gives with one hand, and takes away with another,
and will significantly hinder skilled nursing facilities' (SNFs') ability
to care for the higher-acuity patient population actually intended by CMS
policy.

"Our profession is alarmed by the CMS action taken today, which we
initially estimate will have the net effect of cutting SNF payments by
approximately $5 billion over five years," said Bruce Yarwood, President
and CEO of AHCA. "The policy we are currently following, as intended by
existing law, improves our ability to care for a higher acuity patient
population. The CMS changes, which we will now analyze in detail and
comment upon as warranted, gives with one hand and takes away with another
-- leaving frail, elderly seniors in greater jeopardy as a result."

Alan Rosenbloom, President of the Alliance, stated, "Regulatory-driven
budget cuts like those incorporated into the CMS rule would inhibit skilled
nursing facilities' ability to continue caring for increased numbers of
high-acuity patients, and undermine our ongoing efforts to invest in and
build the necessary clinical infrastructure to ensure care quality is
maximized. As this detailed 139-page rule requires close scrutiny and
study, our initial reaction is that it will unquestionably place at risk
our long-standing goals of increased efficiency and effectiveness -- which
benefits nursing home patients, our caregiver workforce, and taxpayers
alike. Substantial modification is in order, and we urge Congress to
carefully scrutinize this CMS directive."

Independent studies indeed confirm SNFs provide post-acute
rehabilitation to dramatically more patients than in the past -- and at a
significant savings to the Medicare program. A recent United Hospital Fund
report, for example, found that the number of patients in New York State
staying in a nursing home for less than two months more than tripled from
1996 to 2005. In addition to this rise in short-stay patients, the study
further concluded that, "between 1996 and 2005, both long-term residents
and short-term patients have become more disabled, and more of them are
cognitively impaired."

Yarwood and Rosenbloom said the UHF report exemplifies the increased
role that SNFs play in this arena -- not just in New York State, but
nationwide. "This growing positive trend has been driven, in large measure,
by intelligent and sound Medicare policy changes designed to move patients
to the lowest cost, most appropriate setting," observed Rosenbloom.

"As the nature of the nursing home patient population continues to
change and evolve, it is incumbent upon the federal government to help
facilitate the ability of SNFs to accommodate the care needs of
high-acuity, post-acute Medicare beneficiaries," Yarwood continued.
"Unfortunately, a key piece of the CMS rule published today is directly
contrary to this highly desirable health care policy objective."

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